Press releases - 2025

Sasol and Anglo American have entered into a Joint Development Agreement (JDA) to produce feedstock for renewable diesel, as both companies work to progress their efforts to reduce greenhouse gas emissions.

Signed on the sidelines of the Investing in African Mining Indaba in Cape Town today, the JDA paves the way for Sasol and Anglo American to collaborate in the establishment of a pilot project for locally sourced and produced sustainable biomass feedstock for renewable diesel.

The pilot project allows for the assessment of technical and commercial viability of feedstock production in South Africa for commercial production of renewable diesel and involves trials of Solaris and Moringa plantations to be conducted over a 24-month period. In addition, desktop studies during the pilot phase of the project, will assess alternative biomass for feedstock production, land availability, market potential and socio-economic impact.

Once proven technically and commercially viable, Sasol’s Natref facility will be used to process, refine, and distribute the renewable diesel for potential future offtake by Anglo American and other interested customers. Natref will be ready to produce limited amounts of biofuels on a trial basis by 2027 with plans to convert to a large-scale biorefinery in the early 2030’s.

Renewable diesel production has potential positive socio-economic impact, including establishing a new agricultural sector, which will create new jobs, and see the development of Small and Medium Enterprises (SMEs) to supply the value chain.

Speaking at the signing ceremony, Sarushen Pillay, Sasol’s Executive Vice President (EVP) Business Building, Strategy and Technology, described the initiative as groundbreaking, saying it augurs well for all partners’ decarbonisation efforts. Pillay said:

“Renewable diesel is transformative, matching the technical standards and chemical properties of fossil diesel while reducing greenhouse gas emissions by up to 90%. This allows customers to seamlessly use it in their existing equipment while enjoying the benefit of greenhouse gas reductions. Partnering with Anglo American, we're investigating the development of a local and cost-effective supply chain for sustainable feedstock, utilising vegetable oil to produce renewable diesel at our Natref refinery. As we innovate for a better world, Sasol’s ambition is clear — to help our customers navigate the energy transition while delivering high-quality, sustainable solutions for a low-carbon future."

Anglo American’s Projects and Development Director, Alison Atkinson said: “This is an important initiative to strengthen our commitment to reducing our greenhouse gas emissions by 2040. It is an innovation that contributes to our sustainability journey as a business and our quest to maintain a healthy environment by creating carbon neutral operations.

“We worked closely with our De Beers colleagues to conceive this partnership given their pre-feasibility studies on renewable diesel production trials within their mining operations and host communities. De Beers is also providing the more than 20-hectare pieces of land on which the trial feedstock will be grown, in Blouberg, Messina; Marble Hall in Limpopo; and the Voorspoed mine closure site in the Free State”.

Renewable diesel and sustainable feedstocks are mature traded commodities in developed markets. Initial estimates show that local feedstock could be produced at a more favourable economic cost than currently traded worldwide, ultimately reducing the final cost of the renewable diesel.

Although renewable diesel production in South Africa is not yet at commercial scale, recent market engagements indicate that the country’s biofuels market is about to take off, driven by end customer demands and sustainability targets.

This collaboration between Sasol and Anglo American is an important step in the push towards sustainable energy solutions in South Africa.